The Asian Development Bank (ADB) has approved a US $ 250 million loan to assist the Cambodian government in responding to the outbreak of the disease.

According to the Asian Development Bank's press release on July 8, the loans will help the poor and vulnerable and support SMEs in Cambodia.

Asian Development Bank President Masatsugu Asakawa said: “This loan will contribute to the Royal Government of Cambodia in response to the outbreak of HIV / AIDS, especially in reducing the social and economic impact of the epidemic. This.

“Cambodia has a record of good macroeconomic management, but COVID-19 threatens to slow down progress in poverty reduction, especially among vulnerable groups such as women and migrant workers. The loan is the ADB's long-term plan to focus on supporting Cambodia's economic recovery and public financial sustainability. ”

Cambodia is particularly vulnerable to the negative effects of COVID-19 due to its open economy, narrow economic base and large population. ADB expects Cambodia's economy to shrink by 5.5% by 2020, driven by a decline in tourism, exports of garments, footwear and travel equipment and a decline in construction activity.

The risk of the decline could lead to another 1.3 million people falling into poverty.

In March, Cambodia announced an in-depth response to COVID-19 with an initial measures package totaling $ 815.7 million, accounting for 3.2% of GDP expected by 2020. These include support for the health system to prepare for the rising number of COVID-19 cases, and for workers and enterprises, including injecting $ 150 million in capital to support small and medium-sized lenders.

The support package includes $ 300 million in cash assistance to poor and vulnerable families in the government's database.

By Khada